Real estate of Umm Al Quwain - UAE

The existing real estate law regulating land and property ownership in Umm Al Quwain was issued in 2006 by His Highness Shaikh Rashid bin Ahmed Al Mualla, member of the UAE Supreme Council and Ruler of the emirate.

According to Article 13 of Law No. 3 for 2006, property ownership in Umm Al Quwain is limited to UAE and GCC nationals or corporate bodies owned by them. However it allows foreigners and expatriates to buy land within Umm Al Quwain but not in pre-designated investment zones. They can also enjoy the benefits of ownership of their surface property on the basis of a 99-year old lease period.

Having identified the real estate, tourism and trade industries as potential growth sectors, the planners of Umm Al Quwain have executed a rather ambitious expansion programme, aside from investing heavily in infrastructure development. They aim to integrate these components seamlessly to provide a unique development to bolster the local economy and generate employment for thousands. Developers investing in real estate projects in Umm Al Quwain will now enjoy massive tax holidays and improved amenities like good roads, water and electricity connections, ready availability and hassle-free transportation of construction materials. In addition, Umm Al Quwain is planning to develop industrial and business areas to complement its booming residential market in the hope that the miniscule emirate would attract not only would-be residents but also business speculators.

Most recent real estate investments in the United Arab Emirates have been in Umm Al Quwain and the northernmost emirate of Ras Al Khaimah; both emirates plan to spend billions of dollars to build a series of middle to high-end residential apartments, villas, schools, shopping malls and entertainment centres.

The major property investors in Umm Al Quwain include South Asians, primarily Indians and Pakistanis. Iranians and Russians also figure among the businessmen flocking to this emirate.

Real estate projects

One of most extensive realty projects that was recently unveiled in Umm Al Quwain is the Al Salaam City, referred to in Arabic as Madinat Al Salam; it is an integrated residential and commercial development within the city of Umm Al Quwain. Estimated costs of this ‘city’ hover around $8.3 billion.

Al Salam City is to be constructed in three different phases over a period of 15 years and is composed mostly of residential districts, high-rise towers, parks, playgrounds and entertainment centres. When complete, it will cover 220 million square feet and accommodate half a million residents; every apartment and villa cluster in Al Salaam City will have unrestricted access to a private park, swimming pools, children’s play areas and nurseries. The first district will contain 1,000 residential villas and the second will comprise 200 buildings of 5 to 10 floors. The first phase will cover an area of 15 million square feet (1.4 million square meters), and is composed of 15,000 residential units that are expected to be completed before 2009. All residential units in Al-Salam City will be sold on a 99-year lease basis, which will entitle owners with residence visas.

The positive happenings in the emirate’s real estate market have also lured big players like Emaar Properties; among the latest offerings from the Dubai-based real estate giant is the Umm Al Quwain Marina, a community of 8000 stylish homes, designer hotels, sports & yacht clubs and retail centres, along the ocean, lakes and canals. The $3.3 million Umm Al Quwain Marina is spread over 2000 acres of land and features 450 acres of navigable water area.

Why invest in Umm Al Quwain real estate?

Owing to the current growth track of Umm Al Quwain, a home or property in this northern emirate is considered to have great long-term value. Moreover properties here come cheaper when compared to those in sophisticated and cosmopolitan hubs like Dubai and Abu Dhabi; and the buyer may come across some truly great bargains. As the real estate market in Umm Al Quwain is still some way from realising its potential, competition persists among developers and better-executed projects attract buyers while badly planned developments die an early death.

As it is still under developed, Umm Al Quwain offers myriad long-term incentive schemes to woo business speculators and buyers. Luxurious and spacious dwellings can be bought for rates far cheaper than what they command in Dubai. For those who seeking a break from the din and clutter of the cities, Umm Al Quwain, with its serene pathways and unhurried pace of life presents the ultimate escape route and the opportunity of a lifetime to set up their dream home.

Although currently foreigners and expatriates are debarred from possessing any property in their names, there is widespread belief among real estate consultants that this could soon change, paving the way for freehold property ownership within Umm Al Quwain. 

By Mini Sreenarayanan

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